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Zynga's revenue concentration indicates that around 680,000 players are paying about $1,100 each year to play Zynga's games, according to a new report by Macquarie Equities Research.

The firm initiated coverage of Zynga at a price target of $9 with a neutral rating, citing an untested free-to-play model in western markets and Zynga's compact revenue concentration. Only around 2.2% of Zynga's players contribute revenue to the company's $800 million plus revenue annually.

Zynga players pay around $70 per quarter or $280 per year to play Zynga's games, according to estimates in the report. When applying the "80/20" rule, where 80 percent of the revenue comes from 20 percent of paying customers, that amounts to 680,000 players paying $1,100 each year.

(To be clear, this is an estimate.)

Here's are the details from the report:

Finally, revenue concentration is a notable issue. We point out that while ZNGA counts over 150mm monthly unique users, under the free-to-play model, only 2.2%, or about 3.4mm players actually pay the company anything. This means that each of ZNGA’s paying players on average pay the company about $70/qtr or $280/yr to play its games. However, what is both extraordinary and a meaningful concern is that when we apply the 80/20 rule to the paying players, it implies that just ~680k account for 70%+ of ZNGA’s total revenue (excluding advertising). It also implies that these top 20% of paying players are paying, on average, over $1,100 per year to play ZNGA games.

By comparison, some subscription-based online games like World of Warcraft charge around $15 per month — or $45 per quarter and $180 annually.